PDS' Sri Lankan subsidiary Norlanka acquires 26% stake in Nobleswear

This move is a pivotal milestone in PDS's strategy to broaden its manufacturing footprint in key locations, emphasising its commitment to innovation, collaboration, and excellence in the global fashion industry. The acquisition further solidifies PDS' foothold in the children's wear segment and expands its comprehensive fashion solutions portfolio, PDS said in a media release.

Nobleswear has established itself as a trusted partner for top apparel brands, delivering high-quality children's wear products with a focus on innovation, sustainability, and trendsetting designs. Nobles clocked a topline of c. ₹138 crore, which has more than doubled over the last 3 years, with a bottom-line profit of c. 8 per cent in FY23.

Norlanka reserves the right to acquire an additional 24 per cent stake at the same valuation over the next three years. This strategic option positions Norlanka to further consolidate its position and actively participate in the growth trajectory of the partnership, underscoring the company’s commitment to long-term collaboration and value creation.

"We are thrilled to announce the acquisition of a 26 per cent stake in Nobleswear Private Limited," said Pallak Seth, executive vice chairman at PDS. "This strategic move aligns with our vision to expand our manufacturing footprint beyond Bangladesh. By combining Norlanka's manufacturing capabilities and PDS' global network with Nobleswear's expertise in children's wear, the partnership aims to deliver unparalleled value to customers and drive growth in the highly competitive fashion industry.”

“The foundation of this acquisition is deeply rooted in our core values, particularly our commitment to maintaining an asset-light business model. Consistent with our ongoing operations, our strategic intent is to optimise this newly acquired manufacturing asset to unlock myriad sourcing opportunities, echoing the successful models we have established in Bangladesh and Sri Lanka through our existing manufacturing facilities. PDS propels a ₹10,000 crore plus sourcing business on the back of c. ₹700 crore manufacturing operations. This approach aligns with our overarching strategy to enhance efficiency, and drive sustained growth,” said Sanjay Jain, Group CEO of PDS.

Chandana Ranatunga, CEO of Norlanka, added, “This strategic move not only expands our portfolio, enhances our operational capabilities but expands our customer base. We are excited about the potential synergies between Norlanka and Nobleswear, leveraging our combined strengths to deliver unparalleled value to our clients. The acquisition aligns with our commitment to excellence in manufacturing and innovation."

The investment in Nobleswear involves subscribing to shares in the company and making a primary infusion of capital.

As part of the acquisition, both Norlanka and Nobleswear are committed to upholding the highest standards of ethical business practices, sustainability, and social responsibility. The partnership will prioritise the well-being of employees, local communities, and the environment.

The closing of the transaction is subject to the customary transaction conditions.

Fibre2Fashion News Desk (KD)